Economic Slowdown, Fewer Business Mergers

In 2019, 25 M&A files were submitted to the Costa Rican authorities, down from 40 in 2018, which can be attributed to the decline in economic activity.

Monday, February 3, 2020

Although in the second half of 2019 the Costa Rican economy began to report signs of recovery, last year was marked by a slowdown in the Monthly Index of Economic Activity (IMAE) and consumer uncertainty.

You may be interested in "Economic Slowdown: What Was No Longer Consumed?"

According to information from the Ministry of Economy, Industry and Trade (MEI), in 2016 and 2017 the Commission to Promote Competition (Coprocom) resolved 37 processes, in each year. Then, in 2018 the number of cases processed rose to 40, and in 2019 the figure fell to 25.

Mariana Castro, president of Coprocom, told Nacion.com that "... the decline in the economy's dynamism would be one of the reasons for fewer mergers and acquisitions."

For Sergio Wienik, CEO of Capital Financial Advisors, the market is still hungry, but "... the economic stagnation of recent years has caused buyers to apply more conservative valuations to target companies."

Do you need detailed information about your sector? Contact Us.








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Management: How to Deal with Negative Scenarios?

September 2019

Understanding the economic environment the company is facing, generating projections in real time and having the opinion of external consultants to the organization, are some of the strategies that could help companies in times of low sales.

In Central America, during the first half of the year, some economies reported declines in their productive activity.

Supermarket Business In Few Hands

July 2018

In Costa Rica, Walmart has agreed to buy the supermarket chains Perimercados, Súper Compro and the Saretto store, until now owned by Grupo Empresarial de Supermercados.

Walmart Mexico and Central America reported that the transaction was presented on July 19 to the Commission for the Promotion of Competition (Coprocom), which must evaluate and authorize it.

Costa Rica’s Economy Slowing Down

December 2012

Indicators show a loss of dynamism in the Costa Rican economy, which fell from a year on year growth of 7.2% in February, to 2.39% in October.

The editorial in Nacion.com notes the risks posed for next year, 2013, for Costa Rica's economy, if the symptoms which have been noticed deepen, either because of global economic vicissitudes, or from lack response from the government or private economic participants.

Guatemala: Modest growth anticipated for 2008

August 2008

The Association for Investigation and Social Studies (ASIES) carried out a moderate study of the local economy.

ASIES analyst, Carlos Gonzalez, pointed out that the unfavorable external climate resulting from the financial crisis, and the high price of oil and food - that started in 2006 and worsened in 2007, began to affect production activities during first semester of this year.

 close (x)

Receive more news about Mergers & Acquisitions

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Heavy Equipment: Reps Wanted

Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico.
The company manufactures and sells telescopic,...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Aug 11)
Brent Crude Oil
45.030
Coffee "C"
113.3
Gold
1,936
Silver
24.885